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Highlights
- Revenue Growth: South32’s revenue from continuing operations soared 25% to US$3.12 billion.
- Profitability Boost: Net profit after tax skyrocketed 577% to US$359 million, reversing previous losses.
- Dividend Increase: Interim dividend per share surged 750% to 3.4 US cents.
South32 Ltd (ASX:S32) experienced a notable rise in its share price on Thursday following the announcement of its half-year financial results. The mining giant's stock climbed 1.5% to $3.48 as investors reacted positively to its impressive earnings report.
For the six months ending December 31, South32 reported a remarkable turnaround in profitability. The company's revenue from continuing operations surged 25% year-over-year to US$3.12 billion. A significant improvement was also seen in its operating profit, which rebounded from a US$52 million loss to a US$520 million gain.
The standout figure was net profit after tax, which soared 577% to US$359 million, showcasing a substantial financial recovery. Earnings per share (EPS) climbed from 1.2 US cents to 8 US cents, allowing South32’s board to announce a massive 750% increase in interim dividends to 3.4 US cents per share.
Positive Outlook for FY25
Investors were also encouraged by South32’s reaffirmed guidance for FY25 production targets, except for its Mozal Aluminium operations, which continue to be affected by civil unrest in Mozambique.
South32’s CEO addressed the company’s outlook, stating:
"FY25 production guidance remains unchanged, except for Mozal Aluminium, where we have updated forecasts due to ongoing challenges in Mozambique. However, our operational discipline and favorable currency trends should help lower unit costs across most of our operations in the second half of FY25."
